Kangaroo approves PT Bayan bid
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Directors of junior miner Kangaroo Resources has given a tick to a bid from Indonesian coal miner PT Bayan, which values the company at $515 million.
PT Bayan has offered 15 cents per share to Kangaroo investors, with the company already holding 56.06 per cent of Kangaroo stock.
That means about $226 million of shares will change hands if the deal moves forward.
The two companies have been working on a deal since early May, and PT Bayan’s proposal was reviewed and approved by Kangaroo’s independent directors (excluding those associated with PT Bayan).
The directors have appointed KPMG to independently review the proposal and assess if it will be in the interest of minority shareholders
According to an ASX release today, the 15 cent offer is at a 615 per cent premium to Kangaroo’s three month volume weighted average price prior to the deal’s original announcement.
Kangaroo has been working on developing three thermal coal projects in the East Kalimantan, Indonesia, where it already has a contractual agreement to use PT Bayan’s infrastructure assets.
Kangaroo was advised by HopgoodGanium Lawyers, while Deloitte advised independent directors.
Allens is advising PT Bayan.
The deal will need Foreign Investment Review Board approval and a tick from 75 per cent of minority shareholders.
Shares in Kangaroo hopped up 40.5 per cent to be 12.5 cents each at the close of trading.